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Wednesday, December 19, 2007

HOT STOCK : AUROBINDO PHARMA

One of the largest API manufacturers in Asia, Aurobindo Pharma has commercialised over hundred APIs. Aurobindo's products are spread over six major areas encompassing Antibiotics, Anti-Retro Virals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.

Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes.This is an A group stock trading at a PE of only 10 at current market price. The price is near year's low and technically looks as bottoming out. The stock is also in FNO and can see some action in the near future. Being an A lister in the Pharma industry, this stock deserves a PE rating of 15-20 and thus, a price target of 780 to 1040 in the medium to long term. Cheers!

Navin, some info from money control message board. current price is 19 is it worth investing?

Jasch Jasch Industries

Market Price : 14.35Target : 550Jasch : company annual sales at42 crores,with bottom line of 1.71crores,with an EPS of 1.7 ,Market cap stood at 15 crores .Do you find anystock in current market leing at a PE of less than 10,sales/market cap =3.Moreover comapny oflate diversify into realestate businees with Mittal associates,which will reap profit from coming quarter.Comapny land value + korean plant cost estimated to be more than 600 crores.So by simple calculation : 600 /1.1 - 550 Rs target price by june,2008. Comapany will be coming for a right issue very soon in next fiscal,so promoters & operators will ramp up the stock as well.

Regarding your copy paste of message on Jasch. Firstly, the market price is 19.60 not 14.35. Secondly, following is the copy paste of a response to the message you have posted :

"Can you provide some more background on how Jasch is worth 600 crores?their total assets as on 31-mar-07 are 34 crores and net block is 16 crores.

RegdsSundar"

All sorts of rumors and price targets are now being floated in the market for even small unknown stocks. While I am not commenting on this stock in particular, I would advice you and everyone else to stay very cautious in the market now.

Hi Superstar.,Sorry to use this forum to ask about other stocks. I hold 2000 shares of Tata investment corporation picked up at various stages from Rs.390 to Rs.580. There was a Tata offer of buy back at 600/share. Despite the buy back announcement the stock went upto 700. suddenly it crashed to 630 yesterday. I am in a dileman now. can I exit and use that money for Aurobindo Pharma or South Asian petrochem (I like this most out of your recommendations). Everybody told me that the Tata inv. corporation is like Gold and I can hand over to my children. My faith is a little shaken. I solicit your advice please.

Hi Superstar,This is my first visit to your blog and obviously first comment too !!!Let me give my feedback, I am thorougly impressed by your analysis and out look. I fully agree with you that Aurobindo Pharma is a great pick at this price. These are the price points be it 520 OR 490s, its time to accumulate such stock.

Keep up your work, needless to say that your blog would be my daily must watch sites for updates.

Hi Srini,What happened with IFCI is unfortunate. The stock had run up from 10 to 120 in the last eight months or so on the news of the stake sale. And yesterday the news came that the sale was off. The fundamental worth of the share is approx. Rs.65. The stock is likely to be in the range between 65 to 85 for now.

No doubt Tata Investment is a good stock posting good earnings. But chartically it looks like it made a top in the short run around 704 levels. There is little to choose between Tata Investment and Aurobindo besides the fact that Tata investment is now correcting and the correction in Aurobindo seems to be getting over. While in the long run, it is difficult to choose between the two, in the very short term, I feel Aurobindo might perform better.

Unichem Labs had jumped to 237 levels immediately after my buy call at approx. 190 levels. It is a fundamentally very sound stock which can be held for long term investment with targets of over 300and possibly over 400. I would be a buyer at every dip in this stock. I don't think a stop loss is required in this stock unless something very drastic or unprecedented happens in the overall market scenario. For your information, it has been reported that Reliance Capital has also bought 5.5 lakhs shares of Unichem Labs only a few days back. I am very bullish on this stock.

About your queries on Assam co. and GV films......I don't actively track either of them. But there has been some buzz about Assam Co. which is essentially a tea plantation company as FIIs have increased their stake in that company this year. GV Films is an outright penny stock.

It has been noticed that a lot of penny stocks which can be put in the category of cats and dogs have also started moving in the current rally in mid and small caps. I would advise extreme caution in dealing in such penny stocks and would caution investors against falling prey to all sort of operator driven rumours. Such stocks can fall faster than the speed with which they go up.

Dear Navin,You are a real super star. I have recoverred my almost all lost amount in IT stocks, thanks to your advise.Can you please advise on Infosys from a 6 months point of view? I have 100 at average price of 1910.Thanks,Vikram

Natco Pharma is a decent stock in the Pharma sector trading at a PE of around 13 approx. I would say that it would perform in line with the Pharma sector and would probably not outperform it. I am not too fond of GTL Infra as the fundamentals don't look attractive to me at this stage.

Hi Vap75,

Thanks for appreciating. I think Infosys can easily go back to your avg cost price within the next six months and may even give you a small profit. But it may not give you too much in terms of profit. The wise thing to do would be to wait till its quarterly results are out in January, 2008 and then decide on the future course of action.

I am mahesh and it's my first visist to your blogsite. I have been a constant tracker of your picks on moneycontrol. Sir i have been truly impressed with your low priced but high valuation picks. Sir my email id is mahesh2trade@gmail.com Sir i would be really thankful to your if you include me in your mailing list sir.

I am mahesh and it's my first visit to your blogsite. I am a constant tracker of your value picks on moneycontrol.com. I am really impressed with your low priced high valuation picks. Sir my email id is mahesh2trade@gmail.com. Sir i would be truy grateful to you if you include me in your mailing list.

Thanks for the compliments. I had recommended Mirc Electronics around 18 rupees some months back. It is now trading at approx. 30 rupees. They are the owners of the Onida brand of electronics. The half year eps of the company is 1.35 and at current price, the stock seems fairly valued to me.

dear superstar i m pankaj panjabi from gujratbasicaly i m civil engineer buti have left my construction business due to some family problemnow i want to statrt this businessof short term trading with initial investment of 10 to 15 lacs before this i have invested some moneyin this market, i have read yrrecomandation and i think u rvery famous boarder in moneycontrolplease guide me in this businessmy email id :ppanjabi123@yahoo.co.in . please do needful for me

Hi NavinAkhil from Canada. Need your suggestion when u can spare a second.I have some stks on the following scrips..BHARAT BIJLEEAMAR RAJAKIRLOSKAR OILCARBORUNDUMIDBIPOWER GRIDPUNJ LYODRELIANCE COMMRPLGODAVARIGMRINDO TECH TRANSFORMERPAPER PRODUCTSGUFIC BIO

I have off-loaded Gufic at 19.90 as per your recommendation.(bought at 16.40)I want to shorten my list to a few solid long term performers. Out of this list, could you please advise what to hold on to and accumulate. I will off-load the rest. Will really appreciate your feedback.Merry Xmas and Happy Holidays.AkhilToronto

Hi NavinAkhil from Canada. Need your suggestion when u can spare a second.I have some stks on the following scrips..BHARAT BIJLEEAMAR RAJAKIRLOSKAR OILCARBORUNDUMIDBIPOWER GRIDPUNJ LYODRELIANCE COMMRPLGODAVARIGMRINDO TECH TRANSFORMERPAPER PRODUCTSGUFIC BIO

I have off-loaded Gufic at 19.90 as per your recommendation.(bought at 16.40)I want to shorten my list to a few solid long term performers. Out of this list, could you please advise what to hold on to and accumulate. I will off-load the rest. Will really appreciate your feedback.Merry Xmas and Happy Holidays.AkhilToronto

hi Superstar,I am new to your forum and writing first time .Can you please suggest me about TTML, I am having this share @58, should I hold it or exit, I want to make good profit in short time .Thanx In advance sir .

I'll address individual stock queries at my earliest available free time. In the meanwhile, let me recommend a movie I'm just back from watching, Aamir's Taare Zameen Par. It is a film everyone MUST watch. Don't miss it.

You haven't mentioned the prices at which you bought your various shares, but out of your long list, I would book profits in RPL, Punj Lloyd & GMR Infra.

Hi Cayotis,

I hope it answers your question on GMR Infra too. Although that stock is a darling of many analysts appearing on Tv, I find it a bit expensive at the current levels of approx. 250. I don't think its fundamentals justify its current price. I would gladly sell it and switch to something with more value. Maybe the tv analysts know something which I don't.

Hi Sid,

I would HOLD TTML at current price. There is a lot of buzz around the telecom stocks due to spectrum allocation and there is also some rumor around TTML merging with TTSL. Hold with a stop loss of 52.

And all of you can be ready for a NEW HOT Stock tip coming up real soon.

Hi Superstar.,Your blogspot is real boon for retail investors like me. Pl. let me know your opinion on the following stocks. Are these good value buys?- Pondy Oxides and chemicals- Pennar Industries- Albert David- GEI industrial systems- N R Agarwal IndustriesI know you are bombarded with a lot of questions. Pl. take your own time and based on your recommendations I shall initiate a buy.thanksVenu

Great recommendation.....Buying a great company like Auro before the massive wave comes in is a great idea. Thanks for the recommendation.

Is there a mailing list that I can be added to for getting your future blog or reco updates? If so, please add me (kkpatel1924@gmail.com). Based on your global visitors, I am adding Chicago to your list as an additional fan based on your current and past recommendations (checked them out).

Welcome to the site. As of now, there is no such mailing list due to time constraints. You just need to keep checking this site on a regular basis for new tips. Going through the Queries under the main topics is also a good idea as sometimes even guests posts valuable tips here.

Hi Raghu,

Good day to you too. Nissan Copper is a Value stock even now and can scale up to 70 plus levels in the short term and 80-90 plus in the medium term (six months) as the Metals & Mining sector is likely to remain bullish for a while. So Hold.

hi superstarI am a small investor who started my career in IT just few years back,knowing the sector a bit,I put my savings in the front runner Infosys,I hv 28@2070,for the past 1 year it is dwindling between 1540 and 2000 and with a strong rupee and credit fiasco in US I dont see it touching 2000 in next 1 year except mayb during quarter results,what do u advice on Infosys?should I wait some more time or sell it at a loss and re invest in some other stock.Plz also let me know about valuations for Satyam.Ur doing a great job by guiding small time investors in the right direction selflessly.God bless u.

Dear SuperstarYour forecast on Aurobindo Pharma was convincing but it is simply rolling downhill from 550. Will it breach its 52-week low of 485 and unwind upto 400? What is the story of preferential shares hitting the market and increasing liquidity? Is this a passing phase or doom for the stock? Shall I book loss and exit or hold. In case of later pl. suggest stop loss

I would recommend a hold and buy on dips strategy on Aurobindo Pharma for the long term. My long term targets are intact even though the short term technicals for the stock are weak. Aurobindo is no different from the rest of the broader market which is falling like nine pins. I think next Mon-Tue would be crucial days for the entire market and specially the mid-small caps category.

I have already answered about CBOP in another thread of this blog. I do not like it at current levels. Switch to something with more fundamental value.

Dear SuperstarI appreciate the tenacity and dedication of yours in answering questions of anonymous boarders like me who are the first-timers in your blog. My concern for Aurobindo Pharma which I took up on your recommendation is far from being alayed but I really thank you for answering. Just sometimes boost the morale of us likes who seems to be adrift in a raderless ship called Aurobindo Pharm in a stormy shark infested sea of share market.Thanks for everything

Dear SuperstarI thoroughly appreciate your tenacity and courteousness in replying first-timers like me. Though my concern over Aurobindo Pharma is far from being alayed yet I thank you again. Do give some morale boosters on our favourite Aurobindo Pharma

respected sir i have been visiting your moneycontrol message wherin i picked up 400 aurobindo pharma solely on your recommendation at the rate of 530 average and from there it has nose dived, i could find one message in bseindia just see it belowSource: BSE - Aurobindo Pharma Ltd has informed BSE that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations: "Without qualifying their opinion, the Auditors draw attention to the non-provision of premium for the quarter amounting to Rs 230,827,941 and Rs 459,146,882 respectively payable on 255,500 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each issued by the Company. The cumulative amount of premium as at September 30, 2007 is Rs 1,396,524,915. Management is of the view that the liability to pay premium on redemption is contingent and the ultimate outcome of the matter cannot be presently determined. Accordingly, no provision for the above liability that may result in future, has been made in the accompanying statement of unaudited financial results". Date: 2007-11-29how this is going to affect the share price in near future will it be able to sustain 400 -405 level waiting for your reply regards

About Me

Hi there!
Thanks for visiting my blogspot. I live in India but consider myself a World Citizen. I have varied interests ranging from the Stock Markets, Astrology to Acting/Writing in Movies. Hope we can share our views and interact with each other through this website.
Cheers!
Navin

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Disclaimer

All information posted on this web site has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Under no circumstances is this an offer to sell or a solicitation to buy securities discussed on this site. Past performance is no guarantee of future success. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. I have positions in some of the companies discussed. All data, information and opinions are subject to change without notice. (c) 2007 All Copyrights belong to Superstar